Louisiana Scholarship Program Financial Audit Guidelines 2021

Louisiana Scholarship Louisiana Scholarship Program Program (LSP) Independent Financial Audit Guide Independent Financial Audit Guide for Participating Schools for Participating Schools (LSP) January 22, 2021

Overview Overview Scholarship funds are public tax dollars and thus come with a high level of responsibility and accountability. La. R.S. 17:4022(3) requires a financial audit of those schools receiving SSEEP funds which must be conducted by a certified public accountant. The LDOE coordinates and pays for these audits. Audit guidance regarding the annual independent audit is published so as to ensure compliance with the law.

Audit Procedures The Allocation Spreadsheet was designed as a tool for each Scholarship school to demonstrate compliance to meet this goal. The purpose of the Allocation Spreadsheet is to demonstrate the segregation of funds through an allocation of expenditures based on student population. The allocation spreadsheet is completed and submitted to the audit firms to conduct expenditure testing in Spring 2021.

Audit Procedures Audit Testing: A sample of program expenditures will be tested to verify that program funds were spent on educational purpose. Documentation Needed: Program expenditure report (check register or report generated from accounting system) Supporting documentation to substantiate the expenditure selected for testing (original invoice, purchase order, contract, payroll documents, cancelled check and/or bank statement)

Allocation Spreadsheet Allocation Spreadsheet Part Part I I

Allocation Spreadsheet Part I Salary expenditures for employees that serve a portion of the total scholarship population are included in Part I of the spreadsheet. The portion of the cost of the teacher s salary attributable to Scholarship students is identified in the spreadsheet. Instructions: 1. Column 1 Enter the name of the school employee. 2. Column 2 Enter the job title of the school employee listed in Column 1. 3. Column 3 Enter the number of students in the respective teacher s classroom (Number of Scholarship Students). 4. Column 4 Enter the total number of students in the respective teacher s classroom (Scholarship & Non-scholarship).

Allocation Spreadsheet Part I Contd 5. Column 5 This column contains a formula and will auto calculate the percentage of scholarship students in the teacher s classroom based on the data entered in Columns 3 & 4. 6. Column 6 Enter the base salary through January 31, 2021 for each employee listed in Column 1. 7. Column 7 This column contains a formula and will auto calculate the amount of the salary that is allocable to SSEEP. 8. Column 8 Enter the employer portion of FICA contributions as listed on the employee s payroll records and/or other supporting documentation. 9. Column 9 Enter the employer portion of Medicare contributions as listed on the employee s payroll records and/or other supporting documentation.

Allocation Spreadsheet Part I Contd 10. Column 10 This column contains a formula and will auto calculate the total salary and payroll taxes entered in Columns 6, 8 and 9. 11. Column 11 This column contains a formula and will auto calculate the amount allocable to SSEEP. This formula will apply the percentage of SSEEP students in Column 5 and multiply that percentage by total salary and payroll taxes in Column 10 to determine the amount of salary and payroll taxes allocable to SSEEP.

Please note that the spreadsheet has been pre-populatedwith example information. Please use the 'Allocation Spreadsheet'tab to enter the school's expenditures throughJanuary 31, Allocation Spreadsheet Part I 2019. SpreadsheetInstructions: If scholarship funds were received,and scholarship expenditures are not kept in a separate bank account, or coded separately in the accounting system, please use this spreadsheet as a tool to assist in making an allocation of the scholarship funds received. There are five parts to the allocation spreadsheet. Youmay choose to populate all sections, or the sections of your choice. Please populate only columns that are highlighted yellow. Calculate the teacher's salary from the beginning of the school year through January 31, 2021. This salary calculation should not reflect the entire year. SchoolName: DEPARTMENT OF EDUCATION EXAMPLE In this column, teachers that teach students that remain in a your class for a full day should be listed here. Student Scholarship for EducationalExcellence Program (SSEEP) Allocation Template EXPENDITURES SHOULD BE REPORTED THROUGHJANUARY 31, 2021 Part I PART1 INSTRUCTIONS:This sectionis used toallocate payroll expendituresforemployeesthat servea sub-set ofthe total scholarship population. TotalSalary and Payroll Taxes AllocabletoSSEEP Number of SSEEP Students TotalNumber of Classroom Students Salary through January 31, 2021 TotalSalary amount AllocabletoSSEEP TotalSalary and Payroll Taxes Name(s) JobTitle SSEEP Percentage FICA Medicare Col. 5 Col. 1 Col. 2 Col. 3 Col. 4 Col. 6 Col. 7 Col. 8 Col. 9 Col. 10 FORMULA $32,295.00 $26,850.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $59,145.00 Col. 11 FORMULA $9,688.50 $11,187.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $20,876.00 FORMULA $9,000.00 $10,416.67 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $19,416.67 EXAMPLE:JoeSmith EXAMPLE:Susy Que Teacher Teacher 3 5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 12 30.00% 41.67% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% $30,000.00 $25,000.00 $1,860.00 $1,500.00 $435.00 $350.00 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Salaries listed here should be before taxes and should not include any benefits. This section of the spreadsheet allocates payroll expenditures for employees that serve a sub-set of the total scholarship population. Part I Sub-total $55,000.00 $3,360.00 $785.00

Allocation Spreadsheet Allocation Spreadsheet Part Part II II

Allocation Spreadsheet Part II Benefits expenditures for employees that serve a portion of the total scholarship population are included in Part I of the spreadsheet. The portion of the cost of the employee s benefits attributable to Scholarship students is identified in the spreadsheet. This Part is designed only for the portion of the employee s benefits that are directly paid by the school. If the school does not offer benefits, this section should be left blank. If the school only pays one benefit (i.e. Health insurance), this amount should be reported and the remaining benefits listed should reflect zero.

Allocation Spreadsheet Part II Part II is used to allocate employee benefits paid by the school Instructions: Column 1 Enter the name of school employee(s) 1. Column 2 Enter the job title of the school employee(s) listed in Column 1 2. Column 3 Enter the number of students in the teacher s classroom 3. scholarship students) Column 4 Enter the total number of students in the teacher s classroom 4. (Scholarship & Non-scholarship) Column 5 This column contains a formula and will auto calculate the 5. percentage of scholarship students in the employee s classroom based on the data entered in Columns 3 & 4

Allocation Spreadsheet Part II, Contd Column 6 Enter the amount of life insurance your school pays on behalf of 6. each employee listed, if applicable. 7. Column 7 Enter the amount of health insurance your school pays on behalf of each employee listed, if applicable. 8. Column 8 - Enter the amount of retirement your school pays on behalf of each employee listed, if applicable. Column 5 This column contains a formula and will auto calculate the benefit 9. amount entered in Column 6 through Column 8 for a total benefit amount. 10. Column 10 This column contains a formula and will auto calculate the amount allocable to SSEEP. It will apply the percentage of SSEEP students in Column 5 and multiply that percentage by total benefits in Column 9 to determine the amount of benefits allocable to SSEEP.

Allocation Spreadsheet Part II In this section, the percentage rate of what the school pay towards the teacher's retirement i.e Schools pays 4.5% retirement Part II PART 2 INSTRUCTIONS: This section is used to allocate employee benefits paid by the school. The employees should be the same as listed in Part I Employee Benefits - Use the applicable SSEEP % to allocate SSEEP expenditures. Benefits Total Benefits allocableto SSEEP Number of SSEEP Students TotalNumber of ClassroomStudents Health Insurance Name(s) JobTitle SSEEP Percentage LifeInsurance Retirement TotalBenefits Col. 5 Col. 1 Col. 2 Col. 3 Col. 4 Col. 6 Col. 7 Col. 8 Col. 9 Col. 10 FORMULA $60.00 $41.67 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $101.67 EXAMPLE:JoeSmith EXAMPLE:Susy Que Teacher Teacher 3 5 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 12 30.00% 41.67% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% $100.00 $100.00 $100.00 $0.00 $0.00 $0.00 $200.00 $100.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $300.00 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Part II Sub-total $200.00 $100.00 $0.00 Columns 6, 7, & 8 Should only include the portion of each employee s benefits that are directly paid for by the school. Louisiana Believes 14

Allocation Spreadsheet Allocation Spreadsheet Part III Part III

Allocation Spreadsheet Part III Part III identifies the costs associated with any employee that serves both Scholarship and non- Scholarship students. This section uses the overall SSEEP percentage (Column 5) and applies that percentage to all salaries and payroll taxes entered in Part III. Notes: The same instructions apply as in Part I with the exception of employees listed. Employees listed in this section serve all students (SSEEP & Non-SSEEP) and may include but are not limited to: Principals a) Guidance Counselors b) Secretaries c) Bookkeepers d) PE Instructors e) Art Instructors f)

Allocation Spreadsheet Part III Salaries listed here should be before taxes and should not include any benefits. Part III PART 3 INSTRUCTIONS: This section is used to allocate payroll expendituresfor employees that servethe entire studentpopulation. Total Salary and Payroll Taxes Allocableto SSEEP Number of SSEEP Students TotalStudent Population Salary through January 31, 2021 TotalSalary amount Allocableto SSEEP Total Salary and Payroll Taxes Name(s) Job Title SSEEP Percentage FICA Medicare Col. 5 Col. 1 Col. 2 Col. 3 Col. 4 Col. 6 Col. 7 FORMULA $17,666.67 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Col. 8 Col. 9 Col. 10 FORMULA $21,530.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Col. 11 FORMULA $19,018.17 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total number of scholarship students enrolled as of 9.4.20 EXAMPLE:John Doe Principal $20,000.00 $1,240.00 $290.00 In this column, all employees that serve the entire student population should be listed here. i.e Principals, bus drivers, cafeteria workers, art/music teachers, etc. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 53 88.33% 60 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total student population as of 9.4.20 excluding Pre-K students $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Part III Sub-total $20,000.00 $17,666.67 $1,240.00 $290.00 $21,530.00 $19,018.17 17

Allocation Spreadsheet Allocation Spreadsheet Part IV Part IV

Allocation Spreadsheet Part IV Part IV identifies benefit costs associated with any employee that serves both Scholarship and non- Scholarship students. This section uses the overall SSEEP percentage (Column 5) and applies that percentage to all benefits entered in Part III. Notes: The same instructions apply as in Part II with the exception of employees listed. Employees listed in this section serve all students (SSEEP & Non-SSEEP) and may include but are not limited to: Principals a) Guidance Counselors b) Secretaries c) Bookkeepers d) PE Instructors e) Art Instructors f)

Allocation Spreadsheet Part IV Part IV PART 4 INSTRUCTIONS: This section is used to allocate employee benefits paid by the school. The employees are the same as listed in PartIII Employee Benefits - Use the applicable SSEEP % to allocate SSEEP expenditures. Benefits Numberof SSEEP Students Total Student Population Total Benefits allocable to SSEEP Health Insurance Name(s) Job Title SSEEP Percentage Life Insurance Retirement Total Benefits Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 Col. 9 Col. 10 FORMULA EXAMPLE: John Doe Principal $100.00 $100.00 $20.00 $220.00 $194.33 53 60 88.33% $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Part IV Sub-total $100.00 $100.00 $20.00 $220.00 $194.33 Refer to the notes provided on Part II. Louisiana Believes 20

Allocation Spreadsheet Allocation Spreadsheet Part V Part V

Allocation Spreadsheet Part V Part V is used to allocate non-payroll expenditures. Instructions: Column 1 Enter the date of the expense 1. Column 2 Enter the check number that was used to pay the expense 2. Column 3 Enter the name of the Payee 3. Column 4 Enter the amount of the total charges 4. Column 5 Percentage of SSEEP students; this percentage auto populates; it is 5. linked to Column 5, Part III Column 6 This column will auto calculate the amount allocable to SSEEP 6. based on the percentage in Column 5 7. Column 7 Enter a description of the expense

Allocation Spreadsheet Part V Part V PART 5 INSTRUCTIONS:This section is used to allocate non-payroll expenditures. Please choose line item expendituresto allocate to the scholarshipfunds. SSEEP Percentage Date of Expense Check # Payee Amount SSEEP Amount Descriptionof Expense Col.7 Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 123 $ 1,000.00 $ $ $ 883.33 EXAMPLE:Books - - $20,876.00 Total Instructional Salaries Total Instructional Benefits Total Schoolwide Salaries Total Schoolwide Benefits Total Non-Payroll Expenditures I. $ - $101.67 II. III. IV. V. $ - $19,018.17 $ - $194.33 $ - $ 883.33 $ $ $ - - - TOTAL ALLOCATEDSSEEP COSTS: $41,073.50 88.33% $ $ $ $ $ - - - - - This percentage is automatically pulled from Part III of the allocation spreadsheet. Important Notes: $ $ - - $ - I and III Totals should agreeto Salaries on Scholarship Budget II and IV totals should agreeto employeebenefits on Scholarship Budget $ $ $ $ $ - - - V total should agreeto Purchased Services, Supplies & - - Materials, Property,Other and reserved on Scholarship Budget TOTALALLOCATED SSEEP COSTSSHOULD AGREE TOGRAND TOTAL ON BUDGET Part V Sub-total $ 883.33 This section is designed for all non-payroll expenditures. Some examples of expenditures are books, utilities and supplies for the school, etc.

Budget Budget Form Form

Budget Form Louisiana Department of Education Student Scholarships for Education Excellence Program (SSEEP) Budget School Year: Participating School: Mailing Address: City, State, Zip: 2019-2020 Site Code: Prepared by: Title: Telephone Number: Email Address: Original Scholarship Budget Expenditure Category Actual Scholarship Expenditures as of 1/31/2020 $ Percent Expended Salaries Employee Benefits Purchased Services Supplies and Materials Property Other Reserved GRAND TOTAL 50,000.00 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% The Budget Form is populated by the information that has been entered in the Allocation Spreadsheet. Therefore, in the $ - $ 50,000.00 Reconciliation of Budget to Actual Report to of SSEEP Expenditures as of January 31, 2020: Expenditure Scholarship Total $ Variance, if any Scholarship Expenditures per detail listing of costs** Category Expenditures (per above)* $ $ $ Salaries and Benefits total expenditures do not equal between your budget form and allocation spreadsheet. Please double-check for accuracy before sending. reconciliation section of the budget form, if you find anything reflected in this section in red, the data will need to be reviewed and corrected. (Something was reported incorrectly in the budget form or the allocation spreadsheet.) (32,686.75) (32,686.75) $ Salaries & Benefits Non-payroll Expenditures GRAND TOTAL 50,000.00 $ $ $ 17,313.25 - - - 50,000.00 17,313.25 * As reported on Budget and Actual report above. **As reported in the LDE approved school Scholarship Program cost allocation spreadsheet or school system generated schedule of SCHOLARSHIP Program expenditures through January 31, 2020. Please provide explanation of any variance identified above: Representative of the entity: Date: EMAIL TO: Staudit@la.gov Total Original Enrollment (Count Date: 9/5/2019) Tuition and Fees Grade K 1 2 3 4 Participating Students Total $0.00 $0.00 $0.00 $0.00 $0.00

FAQs Should the school s portion of payroll taxes be included as benefits in the Allocation Spreadsheet Parts II and IV? No, the school s portion of payroll taxes should be included in Parts I and III (Columns 8 & 9). 1. Do I have to list every teacher/employee on the Allocation Spreadsheet - Parts I and III? No, if the teacher/employee does not teach scholarship students, they should not be listed. 2. A teacher/employee was hired/resigned in the middle of the school year, should they be listed on the allocation spreadsheet? Any teacher/employee that was employed during the testing period (Beginning of the school year through January 31, 2021) should be listed. If they were hired during the school year, the actual salary earned should be listed from the time of hire through January 31, 2021. If they resigned during the school year, the actual salary paid up until the date of resignation should be listed. 3.

FAQs CONTD Should I list employees who were hired after January 31, 2021? No, as the school would not have paid any wages to this employee during the testing period. 4. Should Pre-K expenditures be listed on the allocation spreadsheet? No, expenditures related to pre-k should not be listed because the Scholarship Program only funds K-12. 5. How can I receive a prepare all of this paperwork in such a way as to avoid any audit findings? Review all documents for accuracy prior to submitting to the audit firm. Review amounts entered on the allocation spreadsheet for salaries and benefits for all employees to ensure that amounts agree to supporting documentation. Note: Amount entered should only be the amount paid directly by the school. 6.

Department Contacts Louisiana Department of Education 1-877-453-2721 Office of School System Financial Services Jameka Henderson Ronnie Davis Jr. State Audit Supervisor State Auditor Jameka.Henderson@la.gov Ronnie.Davisjr@la.gov Louisiana Scholarship Program: https://www.louisianabelieves.com/schools/louisiana-scholarship-program

Questions Please address questions to the following email addresses: Financial or Audit questions: Staudit@la.gov Program questions: Studentscholarships@la.gov